Michigan Consumer Protections: Michigan allows payday lending with a $600 cap, tiered fee structure, and a one-loan-at-a-time limit. Rollovers are prohibited. The Department of Insurance and Financial Services regulates consumer lenders, and complaints can be filed with DIFS or the Attorney General.
Interest Rate Cap: Michigan usury cap: 25% for consumer loans; payday loans capped at $600 with 15% fee on first $100, tiered after.
Key Regulations: - Payday loans (deferred presentment) capped at $600 with tiered fees: 15% first $100, 14% on $100-$200, 13% on $200-$300, etc.
- Maximum loan term is 31 days; rollovers prohibited.
- Borrowers limited to one payday loan at a time.
- The Michigan Consumer Protection Act provides additional safeguards against deceptive lending.
Federal protections: The FCRA gives you the right to dispute inaccurate credit report information for free. Credit repair companies cannot charge before performing services (Credit Repair Organizations Act).
Free resources: Get a free credit report annually at AnnualCreditReport.com.
File complaints with Michigan Attorney General Consumer Protection Division.
